Circular 7/2019 — Modifications to Circular 3/2012

(First Section) OFFICIAL GAZETTE Tuesday, April 30, 2019 BANCO DE MEXICO CIRCULAR 7/2019 addressed to Credit Institutions, the National Financial Institution for Agricultural, Rural, Forestry and Fisheries Development, as well as to Regulated Multiple-Object Financial Societies that maintain equity links with credit institutions, regarding Modifications to Circular 3/2012 (Use of labor benefits as backing for financial services contracted by workers and guidelines for the provision of payroll services).

At the margin a logo, which says: Bank of Mexico.- “2019, Year of the Southern Leader, Emiliano Zapata”.

CIRCULAR 7/2019
TO CREDIT INSTITUTIONS, THE
NATIONAL FINANCIAL INSTITUTION FOR AGRICULTURAL, RURAL, FORESTRY AND FISHERIES DEVELOPMENT, AS WELL AS TO REGULATED MULTIPLE-OBJECT FINANCIAL SOCIETIES THAT MAINTAIN EQUITY LINKS WITH CREDIT INSTITUTIONS:
SUBJECT: MODIFICATIONS TO CIRCULAR 3/2012 (USE OF LABOR BENEFITS AS BACKING FOR FINANCIAL SERVICES CONTRACTED BY WORKERS AND GUIDELINES FOR THE PROVISION OF PAYROLL SERVICES)

The Bank of Mexico, with the purpose of continuing to promote the sound development and stability of the financial system, as well as to foster the proper functioning of payment systems and the protection of the public's interests, and having heard through a public consultation process various arguments associated with the operational implementation of Circular 15/2018, considers it necessary:

1. Extend the deadlines for its entry into force and thereby achieve a better implementation of the aforementioned Circular 15/2018.
2. Increase transparency in the formats regarding the periods of immobilization of resources, as well as the consequences of canceling the direct debit or mandate.
3. Optimize, to the benefit of the user, the immobilization times of resources derived from labor benefits for the purpose of applying them to the payment of associated payroll credits.

For the foregoing, based on Articles 28, paragraphs sixth and seventh, of the Political Constitution of the United Mexican States, 24 and 26, of the Bank of Mexico Law, 48 of the Credit Institutions Law, 87-D, paragraph fourth, of the General Law of Organizations and Auxiliary Credit Activities, 4, paragraph first, 8, paragraphs fourth and seventh, 10, paragraph first, 4, paragraph first, 8, paragraphs fourth and seventh, 10, paragraph first, 12, paragraph first, in relation to 20, fraction XI, 14 Bis 1, paragraph first, in relation to 25 Bis 1, fraction IV, and 17, fraction I, of the Internal Regulations of the Bank of Mexico, which grant it the authority to issue provisions through the General Directorate of Operations and Payment Systems, the General Directorate of Financial System Affairs, and the Central Bank Provisions Management, respectively, as well as Second, fractions I, VI and X, of the Agreement on the Affiliation of the Administrative Units of the Bank of Mexico, has resolved to modify the title of the “Applicable Provisions to the Operations of Credit Institutions and the National Financial Institution for Agricultural, Rural, Forestry and Fisheries Development”, the index, the definition of “Payroll-Linked Credit” in Article 2, Articles 22 bis 1, 63 bis, 63 bis 1, 63 bis 2, 63 bis 3, 64, 65, 68, 69, 75, first paragraph, as well as Annexes 1 and 2, and to add the definition of “Linked SOFOM E.R.” to Article 2 and Article 81 bis 2 of the “Applicable Provisions to the Operations of Credit Institutions and the National Financial Institution for Agricultural, Rural, Forestry and Fisheries Development”, issued through Circular 3/2012, added and modified through Circular

Tuesday, April 30, 2019 OFFICIAL GAZETTE (First Section) 15/2018, published in the Official Gazette of the Federation on October 29, 2018, to remain in the following terms:

“APPLICABLE PROVISIONS TO THE OPERATIONS OF CREDIT INSTITUTIONS, REGULATED MULTIPLE-OBJECT FINANCIAL SOCIETIES THAT MAINTAIN EQUITY LINKS WITH CREDIT INSTITUTIONS AND THE NATIONAL FINANCIAL INSTITUTION FOR AGRICULTURAL, RURAL, FORESTRY AND FISHERIES DEVELOPMENT”

INDEX
...
SECOND TITLE
OPERATIONS WITH THE PUBLIC
CHAPTER III
SERVICES
“Section I Charges to Accounts via Direct Debit or Mandate” “Article 64.- Charge Instructions” ...
Section II Transfer of salaries, pensions and other labor-related benefits
...
“Article 81 Bis 2.- Guidelines for the Offer and Provision of Payroll Services” ...
Definitions
Article 2º.- For brevity, in singular or plural, in these Provisions the following shall be understood as:
...
“Payroll-Linked Credit:
a simple or revolving credit or money loan, with or without real guarantee, that an Institution or Linked SOFOM E.R. grants to a natural person who, in turn, is the holder of an Authorizing Account in that same or another Institution, regarding which said parties in the credit or loan have agreed that payments of the corresponding debts shall be made, in terms of the Direct Debit or mandate celebrated for that purpose, by means of the charge of the respective amounts in the said Authorizing Account, by the Institution that manages the latter, on the dates when such payments are due and in accordance with the order of precedence that corresponds in accordance with these Provisions.” ... “Linked SOFOM E.R.: a regulated multiple-object financial society that maintains an equity link with an Institution, in accordance with the provisions of Articles 87-B and 87-C of the General Law of Organizations and Auxiliary Credit Activities, and that, in turn, has been duly registered in the Registry of Financial Service Providers maintained by the National Commission for the Protection and Defense of Users of Financial Services, in terms of the Law for the Protection and Defense of Users of Financial Services.” ... Characteristics of Authorizing Accounts “Article 22 Bis 1.- ...
I. By virtue of said Deposit, the depository Institution shall offer the account holder the right to
designate, individually, Payroll-Linked Credits that he contracts with that Institution or any other or with a Linked SOFOM E.R., with the aim that the resources deposited in the Authorizing Account be used to cover the respective payment obligations, by charges made directly by the Institution. For these purposes, the Institution shall observe the following:
a) ...
Regarding Payroll-Linked Credits, regardless of whether these are granted to the account holder by the same Institution that manages the Authorizing Account or by another Institution different or Linked SOFOM E.R., the designation referred to in this fraction may only be made through the Direct Debit presented in terms of Article 64 of these Provisions or the celebration of a mandate contract between the account holder and the Institution that manages the Authorizing Account, in accordance with that same article. b) ... ... ... For the purposes of what is provided in this subsection, in the event that another Institution or a Linked SOFOM E.R., in accordance with what is stated by Article 63 Bis, fraction I, of these Provisions, declares to the Institution that manages the Authorizing Account that it has offered the account holder a credit or loan susceptible of being designated as a Payroll-Linked Credit and, by virtue thereof, requests from the latter Institution a report on whether the charges that should be made in the Account Authorizing to cover the payments of the debts corresponding to the Payroll-Linked Credit that result, added to those other charges corresponding, if applicable, to the other Payroll-Linked Credits, are equivalent to a percentage that does not exceed the limit of forty percent indicated, as well as, in the case of revolving credits, the amount equivalent to ten percent, indicated above in this subsection or, if applicable, the lesser amount to said percentage that corresponds so as not to exceed the referred aggregate limit of forty percent, the Institution that manages the Authorizing Account, in compliance with the mandate of the account holder referred to in fraction II of this article, shall communicate to that other Institution or Linked SOFOM E.R., by means of the mechanism provided in Article 63 Bis 3 of these Provisions, no later than on the next Banking Business Day, whether the charges subject to the request exceed or not the referred limit of forty percent, as well as the amount corresponding to the limit of ten percent or the lesser percentage that, if applicable, must be applied. In the event that the sum of the charges referred to in the previous paragraph is equivalent to a percentage that does not exceed the aforementioned forty percent and that, if applicable, regarding revolving credits, the respective charges do not exceed the limit of ten percent applicable to said credits in accordance with what was indicated above, the Institution that manages the Authorizing Account shall include, during a period of five Banking Business Days subsequent to the one in which said Institution has communicated to that other Institution or a Linked SOFOM E.R. the situation referred to in that same paragraph, without having received the Direct Debit provided for in the second paragraph of subsection a) above or, if applicable, having celebrated with the account holder the mandate contract for the same purposes, the
amounts corresponding to the charges for the payments of said credits or loans subject to the information request referred to in said paragraph, in the calculation of the percentage that results from all those other additional charges that correspond to credits or loans susceptible of being designated as a Payroll-Linked Credit that are offered to the account holder by that Institution or any other Institution or Linked SOFOM E.R. during that period. In the event that the Institution that manages the Authorizing Account does not receive the Direct Debit indicated, or has not celebrated with the account holder the mandate contract for the same purposes, during the period of five Banking Business Days referred to in this subsection, it shall terminate, upon expiration of said period, the information request indicated, for which it shall cease to include, for the calculation of the percentage indicated in this same subsection, the amounts corresponding to the charges that should have been made in accordance with what was informed in said request. c) In the event that the holder of the Authorizing Account has designated two or more Payroll-Linked Credits in accordance with this article, the Institution authorized to make charges in the Authorizing Account shall apply the respective resources to the payments corresponding to said

Tuesday, April 30, 2019 OFFICIAL GAZETTE (First Section) Payroll-Linked Credits, in the same order of precedence in accordance with the dates and hours of designation of each of the Payroll-Linked Credits, regardless of the dates and hours on which they were celebrated.
For the purposes of what is provided in the previous paragraph, the Institution shall immobilize from the Account Authorizing, on the credit dates prior to those on which the payments corresponding shall be made, the amounts that must be charged to said Account solely to apply them to the payment of the Payroll-Linked Credits on the dates corresponding in accordance with the order of precedence mentioned in the previous paragraph. Consequently, the Institution shall refrain from making available to the account holder or third party authorized to do so, in any other way, those resources immobilized in accordance with what is provided in this subsection. The Institution may not immobilize the resources for more than five Banking Business Days prior to when the payments corresponding shall be made. d) ... ... ... e) ... i) First, the Institution shall charge the amounts corresponding to the Payroll-Linked Credits, in the order that corresponds in accordance with the dates and hours of designation of each of them with that status. For the purposes of determining the precedence among the Payroll-Linked Credits, the Institution shall observe the referred date and time of designation of each of them, and ii) Second, the Institution shall charge the amounts corresponding to the Direct Debit notified by the account holder, directly or through the Provider in question, for payments of goods and services, including the obligations corresponding to the other credits and loans other than Payroll-Linked Credits, as well as, if applicable, those other amounts corresponding to the mandate that the Institution has celebrated with the account holder for the same purposes. ... f) In the event that the Institution opens an Authorizing Account with respect to which it has been made aware, in accordance with what is provided by this article, through the mechanism referred to in Article 63 Bis 3 of these Provisions, that some Payroll-Linked Credit granted by another Institution or a Linked SOFOM E.R. with prior to the opening of said Account has been designated, the referred Institution that manages the new Account Authorizing shall refrain from making charges in this to cover the payments corresponding to a new Payroll-Linked Credit that it grants to said account holder with posterior to the opening of that new Authorizing Account, unless the new Payroll-Linked Credit that it grants has a precedence lower than that which corresponds to that other Payroll-Linked Credit granted previously. ... g) In the event that the Institution that has made charges to the Authorizing Account, in accordance with the Direct Debit or mandate indicated in fraction I, subsection a), of this article, to cover the payments of a Payroll-Linked Credit granted by another Institution or a Linked SOFOM E.R. receives a request for cancellation of said Direct Debit or mandate, as well as the notification provided in Article 63 Bis 2, fraction II, of these Provisions, the referred Institution that
manages the Authorizing Account shall refrain from celebrating with the account holder a new Payroll-Linked Credit or accepting the Direct Debit or the celebration of a new mandate for the payment of any other credit or loan offered with the intention of being designated as Payroll-Linked Credit granted by some other Institution or a Linked SOFOM E.R., for a period of nine calendar months counted from the one in which it receives the request for cancellation of the Direct Debit or mandate referred to. The Institution shall observe what is provided in this subsection without prejudice to the obligation to report said cancellation, as well as the date corresponding to this, to a credit information society, in accordance with the applicable provisions.

(First Section) OFFICIAL GAZETTE Tuesday, April 30, 2019
II. Additionally, the Institution that opens any of the Authorizing Accounts referred to in Article
22 Bis of these Provisions shall celebrate previously with the account holder, as a condition to open said Account or to consider it an Authorizing Account, a mandate, in which it includes the express authorization of this, which has the object that said Institution provides, in accordance with the mechanism referred to in Article 63 Bis 3 of these Provisions, the following information, with the sole aim that it be made known exclusively, in accordance with what is established for that purpose in these Provisions, to:
a) ... b) Those other Institutions or Linked SOFOM E.R.s that, through the mechanism referred to in Article 63 Bis 3 of these Provisions, have indicated having granted Payroll-Linked Credits designated as such with respect to that other Authorizing Account opened previously:
...
...
...
...
The mandate and authorization provided for in this fraction II shall have the object that the Institution mandated gives notice, in addition to the information indicated in this same fraction, that other information referred to in fraction I, subsection b), of this same article solely for the purposes indicated in this.” Characteristics of the Payroll-Linked Credit “Article 63 Bis.- With the aim that the holder of an Authorizing Account can designate a credit or loan as a Payroll-Linked Credit, the Institution or the Linked SOFOM E.R. that grants it shall be subject to the following characteristics, among other applicable circumstances that it agrees with its client:
I. In the event that the credit or loan that said Institution or Linked SOFOM E.R. offers with the
intention of being designated as a Payroll-Linked Credit in an Authorizing Account opened in another Institution, prior to celebrating said credit or loan, that Institution or Linked SOFOM E.R. consults that other Institution that manages the Authorizing Account, through the mechanism referred to in Article 63 Bis 3 of these Provisions, whether the charges it would make in this to cover the respective payments, added to those other charges that, if applicable, must be made with respect to other Payroll-Linked Credits, exceed the limit of forty percent indicated in Article 22 Bis 1, fraction I, subsection b), of these Provisions, as well as, regarding a credit revolving, whether the charges in the Authorizing Account to make the payments of the respective debts, are higher than the limit of ten percent indicated in that same subsection, and
II. The respective borrower or debtor grants, in turn, at the time of the celebration of the Payroll
Linked Credit referred to, a mandate to the Institution or Linked SOFOM E.R. creditor with the object that this manages, on behalf and for the account of said borrower or debtor, with that other Institution that manages an Authorizing Account opened in the name of the latter in which, with posterior to said celebration, their Labor Benefits are deposited or transferred periodically, a Direct Debit to make the payments of the debts corresponding to said Payroll-Linked Credit. The Institution or Linked SOFOM E.R. that offers any person any of the credits or loans referred to in the first paragraph of this article shall be obliged to present to him the conditions of the credit or loan that corresponds to a Payroll-Linked Credit compared with the conditions of a similar credit or loan that is not designated as a Payroll-Linked Credit. The Institution or Linked SOFOM E.R. shall observe what is provided in this article without prejudice to the obligation to report to a credit information society, in accordance with the

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Tuesday, April 30, 2019 OFFICIAL GAZETTE (First Section) applicable provisions, that the referred credit or loan has the status of Payroll-Linked Credit.”

Management of the Payroll-Linked Credit before the Depositary Institution of the Ordering Account

“Article 63 Bis 1.- In the cases referred to in Article 63 Bis of these Provisions, the Institution or SOFOM E.R. Linked that offers the credit or loan susceptible to being designated as a Payroll-Linked Credit shall manage, before that other Institution that holds the Ordering Account, the Direct Debit indicated in the previous article by presenting the application referred to in Article 64 of these Provisions. In this regard, the Institution or SOFOM E.R. Linked that manages the Direct Debit shall assume the status of Provider and Bank of the Provider for the purposes of what is established in Title Two, Chapter III, Section I, of these Provisions and shall indicate, in the referred application, the amounts of the charges subject to the Direct Debit and the days of the month and the term in which they must be made, as well as include the following legend in the corresponding signature field:

“[Full name, paternal and maternal surname of the accredited or borrower], through [Social denomination of the Institution or SOFOM E.R. Linked], who signs this application, on behalf and for the account of the applicant, by virtue of the mandate conferred by the latter to carry out the Direct Debit object of this application.”

As part of the mandate that the Institution or SOFOM E.R. Linked obtains to carry out the Direct Debit referred to in this article, the respective accredited or borrower must grant their authorization so that said Institution or SOFOM E.R. Linked may request and obtain, through the mechanism referred to in Article 63 Bis 3 of these Provisions, information on the Ordering Accounts that the accredited or borrower has opened in other Institutions.

The Institution or SOFOM E.R. Linked referred to in the previous paragraph may only use the information referred to in said paragraph to identify that other Institution before which it could manage the corresponding Direct Debit, so it must refrain from using that information for any other purpose.

In the event that, by virtue of advance payments or for any other cause, the amount or number of payments to be made by the debtor of the Payroll-Linked Credit is reduced, the creditor Institution or SOFOM E.R. Linked must modify the terms of the Direct Debit in accordance with what is established in Title Two, Chapter III, Section I, of these Provisions, in order for the charges made as part of said Direct Debit to correspond to the payments adjusted in accordance with the foregoing.”

Additional cases for the maturity and modification of the Payroll-Linked Credit

“Article 63 Bis 2.- The Institution or SOFOM E.R. Linked that grants a Payroll-Linked Credit may stipulate in the corresponding contract that, in the event that the accredited or borrower revokes the mandate referred to in Article 63 Bis, fraction II, of these Provisions or requests the cancellation of the Direct Debit referred to in the same article prior to the maturity of the Payroll-Linked Credit, said Institution or SOFOM E.R. Linked may, at its choice, rescind the Payroll-Linked Credit or increase the interest rate. In the latter case, the resulting interest rate must be expressly provided for in the referred contract.

In the case provided for in this article, the Institution or SOFOM E.R. Linked must notify:
…
…

In the event that the request for cancellation of the Direct Debit referred to in this article is presented to the Institution that holds the Ordering Account, this must notify said request to the Institution or SOFOM E.R. Linked accrediting the Payroll-Linked Credit, through the mechanism provided for in Article 63 Bis 3 next, no later than three Banking Business Days immediately following the Day on which it received the indicated request.”

Communication mechanism between Institutions

“Article 63 Bis 3.- The Institutions or SOFOM E.R. Linked may carry out the inquiries and provide the information referred to in Articles 22 Bis 1, 63 Bis and 63 Bis 2 of these Provisions, only through the transparent mechanisms that they establish among themselves in such a way that they do not restrict or prevent the participation of the Institutions or SOFOM E.R. Linked on equal terms, whose terms and conditions must be made known to the Central Bank of Mexico’s Authorization and Queries Management, prior to their implementation.”

CHAPTER III
SERVICES
Section I

“Charges to Accounts through Direct Debit or mandate”

“Charge Instructions
Article 64.- The Institution that has opened any Account in it may only make charges in this, for the payment of goods and services, including the obligations corresponding to active credits and loans celebrated with the same Institution or with any other Provider, including any other Institution or SOFOM E.R. Linked, through the Direct Debit executed in accordance with what is established in this Chapter or, in its case, by virtue of the mandate contract that it celebrates with the account holder for the payment of the referred active credits and loans celebrated with the same Institution or SOFOM E.R. Linked. Regarding the Direct Debit, the Institution that administers any Account must attend to the requests for its execution in terms of Articles 70 to 74 next and through the use of the format established in Annex 1 of these Provisions, which is presented to it by the holder of said Account, directly or through the Bank of the Provider. Regarding the referred mandates, the corresponding contracts that the indicated Institution celebrates must include the information corresponding to the cited Annex 1.

The Bank of the Provider must agree with the respective Provider that, when the latter receives the referred Direct Debit, it must collect, at least, the information indicated in the cited Annex 1. In the event that an Institution is the one that has granted the credit or loan object of the Direct Debit delivered, in accordance with this Chapter, said Institution or SOFOM E.R. Linked must collect directly the information referred to in this paragraph.”

Cancellation Requests

“Article 65.- The Bank of the Customer must attend to the requests for cancellation of the Direct Debit presented to it through the use of the format established in Annex 2 of these Provisions. This, regardless of whether the holder of the Account had authorized the Direct Debit through the Provider or that the means used to authorize it was different from that used to formulate the cancellation request. Likewise, in the event that the Bank of the Customer receives from the account holder in question a request to terminate the mandate contract that they have celebrated for the same effects of the referred Direct Debits, it must collect from said account holder a declaration containing the information corresponding to the cited Annex 2.”

Admissibility of the objection of charges
Article 68.- …
…

“Regarding objections notified by the holder of the Account, relative to the Direct Debit requested by a Provider different from the Bank of the Customer, the Bank of the Customer itself must send to the Provider a copy of the notification of objection, no later than the next Banking Business Day after that on which it received it, so that the Provider pronounces itself regarding the admissibility of the objection of the holder of the Account. In this case, the Institution or SOFOM E.R. Linked that has requested the Direct Debit related to the objection must communicate to the Bank of the Customer its resolution on the admissibility of said objection that may apply, as well as the respective evidence, no later than ten Banking Business Days following that on which it received from the Bank of the Customer the copy of the notification of objection.

Tuesday, April 30, 2019 OFFICIAL GAZETTE (First Section)

Regarding the mandates referred to in Article 64, the contracts that the corresponding Institution celebrates must contemplate a procedure relative to the admissibility of the objection of charges derived from such mandates, in the same terms contained in this article.”

Inadmissibility of the objection of charges
Article 69.- …
…
…

“Regarding the mandates referred to in Article 64, the contracts that the corresponding Institution celebrates must contemplate a procedure relative to the inadmissibility of the objection of charges derived from such mandates, in the same terms contained in this article.”

Transfer Requests

“Article 75.- The Ordering Institution must, upon request presented by the holder of the Ordering Account in terms of this Section II, transfer to the Receiving Account designated for that effect, the resources corresponding to the Labor Benefits that are deposited in the Ordering Account. The Ordering Institution must execute the referred transfers in: a) the same Banking Business Day on which the resources corresponding to the Labor Benefits are credited to the Ordering Account, in the event that said credit is made until 17:00:00 hours of that day, or b) the next Banking Business Day following that on which said credit is made, in the event that this occurs after 17:00:00 hours of that same day. Each of these transfers must be made for the total of the resources corresponding to Labor Benefits that have been deposited in the respective Receiving Account, unless the Ordering Institution must execute the previously instructed charge or agreed with the account holder so that the resources available in that Account are applied to the payment of Payroll-Linked Credits that he has celebrated, or if the Ordering Institution must dispose of said resources in compliance with a valid judicial authority order. The transfers referred to in this article will be carried out without cost for the account holders, without prejudice to what is established in Article 80 of these Provisions.”

...
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…
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“Guidelines for the offering and provision of the Payroll Service
Article 81 Bis 2.- The Institution that provides Payroll Services must observe the following:

I. Expressly establish in the contract that documents the referred service all the benefits that said Institution grants to the Employer by virtue of the contracting of the mentioned Payroll Service. Likewise, the Institution must refrain from offering or granting benefits of any type to the personnel or representatives of the Employer with whom it has carried out the management for the contracting of the Payroll Service.

II. Integrate in the respective file for the provision of the mentioned service, the documentation that accredits that the board of directors or equivalent body or, in default, the administrator of the Employer approved the terms of the contracting of the Payroll Service with the Institution.

III. Have documented conduct guidelines authorized by the Audit Committee that the personnel of the Institution must observe when carrying out the promotion, contracting, provision, modification and cancellation of the contracts through which the Payroll Service is documented. Likewise, the Institution must have documented procedures for the dissemination and application of the referred guidelines among said personnel.

(First Section) OFFICIAL GAZETTE Tuesday, April 30, 2019

IV. Have documented procedures so that the internal audit of the Institution reviews, at least every year, the compliance with the guidelines, procedures and other requirements referred to in the previous fractions and reports the respective findings to the board of directors of the Institution.”

“ANNEX 1
Format to request the Direct Debit
[City*], [Federal Entity*], on [Day*] of [Month*] of [Year*] I instruct and authorize that, based on the information indicated in this communication, periodic charges be made in my account as follows:

1. Name of the provider of the good, service or credit or loan, as applicable, that intends to be paid through this direct debit: _____________.

2. …

3. Regarding the payments of the credit or loan object of this Direct Debit, indicate below if this is designated as a Payroll-Linked Credit with respect to which, in accordance with the provisions issued by the Bank of Mexico in Circular 3/2012 or those other issued subsequently, the bank that holds the account here referred to must make the respective charges in the place of the order of precedence that must be followed with respect to the other charges requested to that same account:
   YES………….......  NO.................. 

4. …

5. …

6. …

7. Maximum fixed amount of the charge authorized by the billing period: $_____________________.

Instead of the maximum fixed amount, if the credit indicated in this communication is a revolving credit associated with a credit card that is not designated in this same request as a Payroll-Linked Credit, the holder of the account may opt to authorize one of the following charge options (mark with an X the option that, in its case, corresponds):

The amount of the minimum payment of the period:  The total balance to not generate interest in the period: , or A fixed amount:  (in this last case, specify the amount: $__________).

8. As an exception to the above, if the credit indicated in this communication is a revolving credit designated as a Payroll-Linked Credit, indicate below if the monthly charge must be made by the maximum limit of 10% of the average of the credits in the account indicated in this request for the amounts corresponding to the labor benefits of the account holder, calculated in accordance with the provisions issued by the Bank of Mexico or, instead of said limit, a lower percentage (mark with an X the option that, in its case, corresponds):

Maximum limit of 10% 
Limit lower than 10%  Which will be of ____________(indicate percentage)

9. This instruction and authorization of charge to my account will remain in force for an indefinite term 

Instead of the above, this instruction and authorization of charge to my account expires on the following date:
________________ 

…

Likewise, I am aware that, in the event that this Direct Debit is for the payment of a Payroll-Linked Credit, the institution that holds my deposit account will immobilize the resources from labor benefits that are credited to it, on the next closest credit date to that on which the payment of said Payroll-Linked Credit must be made, for the amount corresponding to the respective payment. By

Tuesday, April 30, 2019 OFFICIAL GAZETTE (First Section)

the foregoing, I recognize that I will not be able to use the resources credited to my account for the amount corresponding from the mentioned date.*

*The Institution will not be obligated to include this paragraph in the present Annex, in those cases where the credit date of the resources from labor benefits is the same date on which the corresponding payment must be made.”

“ANNEX 2
Format to cancel the Direct Debit
…
…
…

1. …

2. …

3. …

4. …

…

In addition to the above, in case that the direct debit that I request to cancel has been made to cover the payments of a Payroll-Linked Credit, as that term is defined in the general provisions issued by the Bank of Mexico in Circular 3/2012, which I designated so that the resources of said payments be charged to a deposit account in which I receive my salary and other labor benefits, I recognize that: 1) the mere cancellation of said direct debit made prior to the maturity of the Payroll-Linked Credit, regardless of whether I make the payments of the pending debts in time and form, will be reported by the credit institution or SOFOM E.R. Linked to a credit information society for informational purposes and also, will cause that no banking institution or SOFOM E.R. Linked will be able to grant me a new Payroll-Linked Credit during the next nine months from the date of this cancellation request, and 2) The banking institution or SOFOM E.R. Linked that has granted me said Payroll-Linked Credit may rescind the contract that we have celebrated for such effect, or well, increase the interest rate that results applicable to the mentioned Payroll-Linked Credit in the terms agreed in the respective contract.”

TRANSITORY PROVISIONS

FIRST.- This Circular will enter into force on the day of its publication in the Official Gazette of the Federation, except for those cases provided for in the following transitory articles. From the referred date, any authorization previously granted by this Bank of Mexico with respect to the compliance of the “Applicable provisions to the operations of credit institutions and of the National Agricultural, Rural, Forestry and Fisheries Development Financial Institution”, issued by the Bank of Mexico through Circular 3/2012, published in the Official Gazette of the Federation on March 2, 2012, added and modified through Circular 15/2018, published in the same Gazette on October 29, 2018, as well as of this Circular, will be without effect, by virtue of which the respective Institutions must comply with said provisions in the terms and cases established in this same Circular.

SECOND.- From the date of publication of this Circular in the Official Gazette of the Federation and until February 28, two thousand twenty, only the Institution that so decides, subject to the prior compliance that it gives to the requirements established in this transitory article, may allow the holders of the Ordering Accounts indicated in this same article that it administers, to designate as Payroll-Linked Credits, in accordance with the provisions contained in Circular 3/2012 issued by this Bank of Mexico, in force on the date of publication of this Circular and modified in the

(First Section) OFFICIAL GAZETTE Tuesday, April 30, 2019 terms included in this Circular, only those credits or loans that meet the following characteristics:
I. Have been contracted by the same holders of said Ordering Accounts with the Institution itself or a multiple-object financial society regulated that maintains patrimonial links with said Institution in terms of the General Law of Organizations and Auxiliary Credit Activities, and
II. Have been granted prior to March 1, 2020, pursuant to contracts that, at the time of their celebration, expressly stipulated that the payments of the obligations corresponding to said credits or loans be made through charges directly made by the Institution only in any of the Accounts referred to in fractions I, II, and III of the following Transitory Article Third.

Without prejudice to the foregoing, only the credits and loans mentioned in this same article may be designated as Payroll-Linked Credits, pursuant to the provisions of this transitory article, subject to the condition that the Ordering Accounts administered by this correspond to those indicated in fractions I, II, or III of the following Transitory Article Third and comply with what is established in article 22 Bis 1 of the Provisions contained in Circular 3/2012 cited, in force at the date of publication of this Circular and modified in the terms included in this Circular and those others that result applicable.

The Institution that falls under the scenario provided in the first paragraph of this transitory article may, during the period referred to in said paragraph, allow the holder of the respective Ordering Account, as an exception to what is provided in articles 22 Bis 1, fraction I, subsection a), second paragraph, and 64 of the Provisions, to carry out the designation, as Payroll-Linked Credits, of the credits or loans previously referred to that said holder has under his charge, without, for this purpose, the latter having to present a new Domiciliation in accordance with said article 22 Bis 1, fraction I, subsection a), second paragraph.

For the purposes of what is provided in the previous paragraph, the Institution mentioned therein may submit to the consideration of the holders of the Ordering Accounts that it administers, through communication that allows proof of receipt by said holders, the designation of the credits and loans previously referred to, as well as the order of precedence according to the dates and, if applicable, hours in which the referred credits and loans were celebrated, in order that, unless said holders reject, within a period of thirty Days from the receipt of said communication, the proposed designation or precedence, such credits or loans remain designated as Payroll-Linked Credits with the referred order of precedence.

For the designation as Payroll-Linked Credits of the credits and loans contemplated in this transitory article, as well as the other credits and loans indicated in the applicable Provisions included in this Circular from its entry into force, the accredited or borrowers concerned may grant the mandate referred to in article 63 Bis, fraction II, of the cited Provisions to the Institutions or multiple-object financial societies regulated that maintain patrimonial links with the respective Institutions in terms of the General Law of Organizations and Auxiliary Credit Activities, that are creditors of the referred credits or loans, through contracts separate from those under which said credits or loans were granted.

The Institution that intends to carry out the designation of Payroll-Linked Credits in terms of what is provided in this transitory article must present to the Bank of Mexico, prior to allowing the carrying out of such designation during the period indicated in the first paragraph of this same article, an opinion signed by its internal auditor in which it states that the cited Institution complies with what is established in Circular 3/2012 of the Bank of Mexico, regarding Payroll-Linked Credits, in the terms established in this Circular, in particular, that: i) it complies with the identification and documentation, in terms of what is provided in article 22 Bis 1, fraction I, subsections a), first paragraph, c), d), and e), of the cited Circular, regarding the Ordering Accounts indicated in fractions I, II, and III of the following Transitory Article Third, and ii) it has the necessary systems and processes to assign the precedence of the referred Payroll-Linked Credits, as well as to immobilize from the corresponding Ordering Account, the amounts that must be charged to said account only to apply them to the payment of the Payroll-Linked Credits, in accordance with the applicable Provisions.

Said opinion must be approved by the audit committee of the Institution in question and also signed by the General Director of the Institution.

From the entry into force of this Circular and until such time as the Institutions do not present the opinion mentioned in the previous paragraph, they may not carry out the designation as Payroll-Linked Credits of those referred to in this transitory article.

THIRD.- Those Institutions that, in accordance with what is provided in the Second Transitory Article, decide to allow the holders of Checking Deposit Accounts to which they designate Payroll-Linked Credits in terms of said article, when they fall under any of the scenarios indicated below, must celebrate with the respective account holders, in accordance with procedures previously agreed upon with them, the agreements that proceed to modify the corresponding contracts for said Accounts, in accordance with what is indicated in article 22 Bis 1, fraction I, subsection a), of this same Circular:
I. Accounts indicated in article 22 Bis, fractions I and II, provided for in this Circular;
II. Accounts to which recurring deposits are made derived from electronic fund transfers from the Treasury of the Federation for the concept of payment of Labor Benefits, and
III. Accounts with respect to which their holders have agreed with the Institution or instructed it to make recurring charges in it to apply the respective resources to the payment of the obligations corresponding to credits or loans that the Institution itself or a multiple-object financial society that maintains patrimonial links with said Institution in terms of the General Law of Organizations and Auxiliary Credit Activities has granted under the denomination of payroll credit.

Institutions will be obliged, from March 1, 2020, to identify as Ordering Accounts those provided for in fraction III of article 22 Bis included in the “Provisions applicable to the operations of credit institutions and the National Financial Development Institution for Agriculture, Rural, Forest and Fisheries”, issued by the Bank of Mexico through Circular 3/2012, published in the Official Gazette of the Federation on March 2, 2012.

FOURTH.- As an exception to what is provided in the previous First Transitory Article, Institutions may only designate revolving credits as Payroll-Linked Credits in accordance with what is established in these provisions, from March 31, 2020.

FIFTH.- In addition to complying with the obligations established in this Circular, Institutions must present to the Bank of Mexico, no later than March 1, 2020, an opinion signed by their respective internal auditors in which it is stated that the Institution in question complies with the corresponding obligations to:
I. The identification and documentation of the Ordering Accounts indicated in fractions I, II, and III of article 22 Bis included in Circular 3/2012, subject to what is provided in article 22 Bis 1 of said Circular, modified in accordance with Circular 15/2018 and this Circular, so that their Clients are in a position to designate the referred credits or loans as Payroll-Linked Credits;
II. Establish the necessary systems and processes to receive and process the corresponding Domiciliation requests, as well as to assign the precedence of the referred Payroll-Linked Credits and immobilize from the corresponding Ordering Account the amounts that must be charged to said account to apply them to the payment of the Payroll-Linked Credits;

(First Section) OFFICIAL GAZETTE Tuesday, April 30, 2019
III. Establish the mechanisms to execute, if applicable, the mandate that the holder of the respective Ordering Account grants in accordance with article 63 Bis, fraction II, of the cited Provisions, and
IV. Subject the designation of Payroll-Linked Credits in accordance with what is provided in the provisions of Circular 3/2012, modified in accordance with Circular 15/2018 and this Circular, to the limits established in subsection b), fraction I, of article 22 Bis 1 of said Circular 3/2012.

The aforementioned opinions must be approved by the audit committee of the Institution in question and also signed by the General Director of the Institution.

As an exception to what is provided in the previous First Transitory Article, Institutions, from the date indicated in the first paragraph of this article, must comply with the obligations referred to in the referred opinion, corresponding to the provisions of Circular 3/2012, modified in accordance with Circular 15/2018 and this Circular. In the event that the Institution in question does not present the corresponding opinion in accordance with what is established in the previous fractions, within the period indicated for it, it must:
a) Refrain from granting credits or loans charged to Ordering Accounts or carrying out the designation of Payroll-Linked Credits of those that it has granted the same Institution or any multiple-object financial society regulated that maintains patrimonial links with that Institution in terms of the General Law of Organizations and Auxiliary Credit Activities, without prejudice to the imposition of sanctions that may apply. b) Send to each of the holders of Checking Deposit Accounts of natural persons indicated below, a communication, in the terms of the format included in Annex “A” of this transitory article, to inform them about this situation:
i) In the scenario provided in fraction I of this Transitory Article, to those holders of the Ordering Accounts indicated in said fraction, and ii) In the scenarios provided in fractions II and III of this Transitory Article, to those holders of all Checking Deposit Accounts in the name of natural persons.

Institutions must send the aforementioned communications, within 30 Days following the respective entry into force date of the unfulfilled obligation, by the means they have agreed with the holders of the Accounts to notify them about aspects related to the corresponding Deposits. The foregoing established in this paragraph must be observed without prejudice to the imposition of sanctions that may apply in terms of the applicable provisions. Additionally, the Institution that incurs in the scenario contemplated in this paragraph, within the same period mentioned, must indicate this situation in a visible place at the first level within its internet page accessible to the general public, in the terms of the referred Annex “A”. This notice must be maintained until such time as the Institution gives due compliance to the mentioned obligations.

SIXTH.- Institutions that have celebrated credit or loan contracts, prior to March 1, 2020, in which it has been expressly established that the payments of the obligations corresponding to said credits or loans be made through payment mechanisms different from that provided in article 64 of these Provisions, may continue using such mechanisms for the payment of the obligations established in said contracts during their validity.

SEVENTH.- Legal entities that are in the process of being authorized to act as Institutions that intend to receive checking money deposits that could be used as Ordering Accounts, must present to the Bank of Mexico the opinion that proceeds in accordance with what is provided in the previous transitory articles, within the corresponding authorization process and prior to starting operations.

Tuesday, April 30, 2019 OFFICIAL GAZETTE (First Section) EIGHTH.- What is provided in article 81 Bis 2 of the “Provisions applicable to the operations of credit institutions, regulated multiple-object financial societies that maintain patrimonial links with credit institutions and the National Financial Development Institution for Agriculture, Rural, Forest and Fisheries”, issued by the Bank of Mexico through Circular 3/2012, published in the Official Gazette of the Federation on March 2, 2012, added by this Circular, will enter into force on January 1, 2020.

Annex “A”
Format to communicate to the holders of Checking Deposit Accounts the non-compliance with what is established in fraction I of the Fifth Transitory Article of Circular 7/2019

Dear Customer:
We address you in relation to the checking money deposit account that you have contracted with us, in which salaries and other resources from your payroll, pension, and other labor-related benefits are deposited. Regarding this, we inform you that this institution does not meet the requirements established in the applicable provisions to enable your account for the purpose of allowing you to access “Payroll-Linked Credits”, which are those credits or loans that are paid with the resources for labor benefits that you receive in the referred account and that may represent for you a greater and varied offer of credit, as well as, potentially, more favorable interest rates and commissions.

We also remind you that you are in conditions to cancel at any time the account that you have with us and contract a new account with another institution, in which your employer can deposit your salaries and other payroll or pension resources and that allows you to access the possible advantages of a “Payroll-Linked Credit”.

For more information on the conditions and costs of “Payroll-Linked Credits” consult the internet portal of the Bank of Mexico at www.banxico.org.mx, section “Services”.

Additionally, for more information on regulatory requirements, consult the provisions of the Bank of Mexico that establish the conditions and requirements for the accounts and credits or loans previously referred to and that are included in the “Provisions applicable to the operations of credit institutions, regulated multiple-object financial societies that maintain patrimonial links with credit institutions and the National Financial Development Institution for Agriculture, Rural, Forest and Fisheries”, issued through Circular 3/2012 and its subsequent modifications, published in the Official Gazette of the Federation, in particular, in articles 22 Bis and 22 Bis 1, as well as 63 Bis and 63 Bis 1. You can consult these provisions on the internet portal of the Bank of Mexico through the following link:
http://www.banxico.org.mx/marco-normativo/normativa-emitida-por-el-banco-de-mexico/circular-3-2012/operaciones-instituciones-cre.html

In case you have any questions or require any clarification on what is indicated in this communication, we put at your disposal the following contact data:
[ Indicate data of the customer service centers that correspond* ].
[_Additional information related to the above that, if applicable, the Institution decides to include. ]

Sincerely,
[ Name of the Institution* ]

• The data corresponding to these items must be filled in by the Institution at the time of preparing the communication.

(First Section) OFFICIAL GAZETTE Tuesday, April 30, 2019 Mexico City, April 24, 2019.- The General Director of Operations and Payment Systems, Jaime José Cortina Morfín.- Rubric.- The General Director of Affairs of the Financial System, Jesús Alan Elizondo Flores.- Rubric.- The Manager of Central Banking Provisions, Fabiola Andrea Tinoco Hernández.- Rubric. For any query regarding the content of this Circular, please contact the Central Banking Authorizations and Consultations Management, at the phones (55) 5237-2308, (55) 5237-2317 or (55) 5237-2000, Ext. 3200.